 |
Rent With Option |
| |
 |
I currently have my home on the market and found someone who is interested in renting with the option to buy. Please tell me how this works and is it beneficial to the seller in the long run. Thank you. |
| |
| |
 |
The tenant-buyer usually puts down a deposit in return for the right to buy the property -- if they decide to -- for a certain amount within a certain length of time. Often the agreement states that if they do buy, the deposit counts toward the purchase price. If they don't buy, the deposit is often non-refundable--the contract would make it clear whether it would be or not. The contract states who will be responsible for property taxes, insurance and repairs -- usually the owner. Meanwhile the tenant moves in and pays rent. Sometimes the rent is set a bit high, with the extra money set aside to go toward the purchase price if they decide to buy. Benefits for the seller include having a tenant who usually takes good care of the place as if it were their own, and eventually selling the house. Drawbacks include the fact that the tenant may decide not to buy. And if you weren't careful about checking their income and credit rating, you could end up with problem tenants. Whether you want to do it depends on your own situation -- how much you want to sell, and how promptly. If you're going to go into this, be sure your own real estate lawyer draws up the contract. |
| |
|
Edith
Originally published on August 14, 2007 |
| |
| |
|
Back to Summary
|
< Previous | Next > |
| |
|
|
